8. Assume you just turned 35. Your current salary is $100,000, and you anticipate that you will receive 3% annual raises until you retire at age 65. You plan on setting aside 8% of your salary each year for retirement, starting one year from today. If you can earn a 12% return on your retirement account contributions, how much will you have when you retire at age 65?
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- Use the information for the question(s) below. Assume that you are 30 years old today and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The present value (at age 30) of your retirement savings is closest to: O A. $87,000. OB. $46,600. OC. $75,230. O D. $108,000.You have just made your first $4,300 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. What will your account be worth when you retire in 28 years? What if you wait 10 years before contributing?You decide to replace your income of $70,000 a year in retirement for 30 years. How much do you need in your retirement account the day you retire to make that happen, assuming a real interest rate of 3%?
- Assume that you are 30 years old today and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The present value (at age 30) of your retirement savings is closest to: a. $75,230. b. $108,000. c. $87,000. d. $46,600.You have just made your first $5,000 contribution to your retirement account. Assume you earn a return of 10 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years? What if you wait 35 years before contributing? (show answer using function feature in excel)Suppose you wish to retire 38 years from today. You determined that you need $220,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 30 such withdrawals. Assuming that you can earn 5% per year on your retirement funds for the next 70 years. C. How much is left in your account after you make your 22nd withdrawl?
- You have just made your first $1,500 contribution to your retirement account. Assume you earn a return of9 percent and make no additional contributions. a. What will your account be worth when you retire in 45 years? Future value for starting now b. What will your account be worth if you wait 8 years before contributing? Future value if waiting 8 yearsAssume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The future value at retirement (age 65) of your savings is:You want to be able to withdraw $50,000 from your account each year for 25 years after you retire. You expect to retire in 15 years. If your account earns 7% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
- Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%, what is the present value of your retirement savings? please answer fast i give upvoteAssume that you are 30 years old today (t=0), and that you plan to retire at age of 65 (t=35). Your annual salary is $65,000 in the coming year (t=1), and you expect your salary to increase at a rate of 5 percent annually as long as you work. You have two financial goals for your retirement. First, you expect to spend 48,000 per year for 20 years after your retirement. The first expense will be one year after retirement (t=36). Second, you expect to leave $2,000,000 to your daughter on your 80th Birthday (t=50). To save for your retirement, you plan to make annual contributions to a retirement account. Your first contribution will be made on your 31st birthday (t=1) and will be a fixed percentage of this year’s salary. Likewise, you expect to deposit a fixed percentage of your salary each year until you reach age of 65 (t=35). Assume that the interest rate is 10 percent. Also assume incomes and expenses occur at the end of each year unless specified differently a) What is the future…You are saving for your retirement. You have decided that one year from today you will deposit 5percent of your annual salary in an account which will earn 6percent per year. Your salary currently (today) is $90,000, and it will increase at 2 percent per year throughout your career. How much money will you have for your retirement, which will begin in 40years? Assume your first payment into the account is one year from today after your first increase.In other words, your next year’s paycheck (Year 1) is more than $90,000since it will increase by 2% each year. (
